§441-37  Trustee of perpetual care fund and
pre-need trust.  (a)  Every perpetual care fund and pre-need trust shall be
administered by a bank or a trust company authorized to do business in the
State; or a board of trustees as defined in section 441-1.  Each authority
covered under this chapter shall file with the director a copy of an executed
copy of the declaration of the fund or trust and any amendment thereto.



(b)  The bank or trust company appointed as
trustee shall file a notice with the director disclosing the name of the bank
or trust company, business address, and such additional information as the
director requires.  A successor trustee shall be subject to the requirements
stated in this section.



(c)  The board of trustees appointed as trustee
shall file the following:



(1)  A notice with the director disclosing the names
of its members;



(2)  A sworn affidavit stating that its members are
not affiliated with the authority which appointed it;



(3)  A bond in the penal sum of $100,000 issued by a surety
company authorized to do business in the State; and



(4)  Evidence of the insurance required by section
441-41(b).



The bond required in this subsection may be
filed either as a board or an individual board member for $100,000 and shall
run to the State.  The bond shall be conditioned that the board of trustees
will faithfully, promptly, and truly account and pay over to all persons to or
for whom it may hold money in trust all sums of money that may properly be due
them.  The director or any person claiming to have sustained damage by reason
of any breach of the conditions of the bond may bring action on the bond for
the recovery of any damages sustained therefrom.  The liability of the surety
shall not exceed the amount of the bond issued to the board of trustees.  The
bond shall continue in full force and effect. [L 1967, c 199, pt of §1; HRS
§441-37; am L 1981, c 221, §19; am L 1985, c 101, §17]